The Economic Values of Utilizing Water Services Way Betung Watershed

Abstract

Way Betung watershed is a source of raw water supply utilized by the Talang Mulya community for various purposes, such as for household needs, irrigation of paddy farming and micro hydro power plant. Water availability is closely related to the existing forest presence in the area, the forest land management should be in balance on be half of maintaing water availability. This study aimed to determine the perception of the community and to analyze the economic value of water for household needs, irrigation of paddy farming and micro hydro power plant. This research also calculated the Willingness to Pay of forest and land rehabilitation costs by community. Primary data collection were conducted by interviewing 106 respondents. The results showed that the community appraisal of water resources in Way Betung watershed were good since 88% of respondents are willing to pay for forest rehabilitation. The total economic value of water utilization in Talang Mulya Village was Rp.2.963.540.390/year and the value of willingness to pay for forest rehabilitation costs was Rp.5.833.608/year with average willingness to pay was Rp.22.948/year. Keywords: watershed , total economic value, the economic value of water, willingness to pay.